Can I use my Tax Credit for a New roof or other home project?
Yes you can!
95% of the time, a homeowner elects to use the 30% Tax Credit to pay for a new roof because the Tax Credit typically results in a very large IRS Refund (check with your tax advisor)
Many times you will solar companies advertising a FREE ROOF when installing panels.
The reality is, however, it is not free because you are using your tax credit to pay for all or part of the new roof installation costs.
This also applies if you choose to use the credit for any other home project.
So please don’t let a solar company tell you to get a free roof!
2 Tax Credit Usage Scenarios
Pay for Roof Upfront then use Tax Credit to reimburse yourself |
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|---|---|
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Pay roofing company out of pocket for roof installation
|
$9,000
|
|
Solar Panel Loan
|
$30,000
|
|
30% Tax Credit added to your refund*
|
$9,000
|
|
Actual cost out of pocket
|
$0
|
Take out an additional amount in a loan to cover the cost of the new roof and solar |
|
|---|---|
|
Pay roofing company out of pocket for roof installation
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$0
|
|
Solar Panel Loan and Roof installation separate loan
|
$39,000
|
|
30% Tax Credit added to your refund*
|
$9,000
|
|
Actual cost out of pocket
|
$0
|
|
Use the Tax refund to pay off the roof loan
|
$9,000
|